Run the LOSER, cut the WINNER

[Jones75]

IDK where to start but I have been trading mainly options last 3 years and try to stick with only weekly SPY options intraday scalping. I bought SPY 210 puts expire 16SEPT right at the open on friday morning and sold around lunch. Market kept selling off afternoon session and cut my profit like usual. /ES gap down double digits into monday open

I always run my loser, exactly every single time. But when it comes to taking profits, I get out fast. Please help.. IDK how but I need to overcome this..

Maybe switch to monthly's instead of weeklies to give your position more time to percolate. Especially this time of year, when the markets are all over the place (wild swings).

 

[atrp2biz]

Trading vertical spreads with defined profit and loss potential may better suit your personality.

For instance, say ABC is trading at $50. Buy (sell) the 49/51 spread for approximately $1. If the spread moves to $1.50 ($0.50), close the position. You do this because the risk/benefit of maintaining the position is skewed to the downside. You only have another $0.50 to gain, while there is $1.50 at risk. Of course this risk is offset by positive theta, but taking off winners from vertical spreads at 50% is never a bad thing.

 

[FreakofNature]

You doing the opposite of what needs to be done, something that will help you get you on the right track is to risk less than your rewards, start with 1x risk 1.5-2x targets, even if the overall outcome is negative, because you lack an edge, it will place brain in the right state mind; which at the present time, it isnt.